Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today
announced first quarter 2019 production of 78,336 ounces of gold,
2.5 million ounces of silver, 3.7 million pounds of zinc and 3.1
million pounds of lead. Metal sales for the quarter were 85,326
ounces of gold, 2.6 million ounces of silver, 4.7 million pounds of
zinc and 2.7 million pounds of lead.
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Quarterly Production Results (Graphic:
Business Wire)
As disclosed on February 20, 2019, the Company expects to
produce 334,000 - 372,000 ounces of gold, 12.2 - 14.7 million
ounces of silver, 25 - 40 million pounds of zinc and 20 - 35
million pounds of lead in 2019.
“First quarter operating results were in-line with our
expectations” said Mitchell J. Krebs, Coeur’s President and Chief
Executive Officer. “Our top two 2019 initiatives – successfully
ramping up operating activities at Silvertip and completing the
installation of the high-pressure grinding roll (“HPGR”) unit at
Rochester – remain on-track. Our Kensington mine continues to see
the benefit of higher grades from the Jualin deposit, while Wharf
exceeded its plan during the first quarter and is positioned to
deliver higher production during the remainder of the year.”
“As previously indicated, our full-year financial and operating
results are anticipated to be second half weighted. We expect
higher production levels at Palmarejo as production begins at the
new La Nación deposit and a new thickener is commissioned in the
second half of 2019. Rochester’s second half 2019 production is
expected to increase due to the positive impacts of the new HPGR
unit, while higher mining and processing rates from the
higher-grade Jualin deposit are expected to boost second half
production at Kensington. Together, these initiatives are expected
to lead to a return to positive free cash flow in 2019.”
Operations
First quarter production and sales highlights for each of
Coeur's operations are provided below.
Palmarejo, Mexico
1Q
2019 4Q 2018 3Q 2018 2Q
2018 1Q 2018 Tons milled
378,987 378,389
300,116 344,073 359,893 Average gold grade (oz/t)
0.07 0.08
0.10 0.11 0.10 Average silver grade (oz/t)
4.64 5.96 6.26
6.86 6.88 Average recovery rate – Au
83.4% 97.6% 88.8% 89.9%
80.4% Average recovery rate – Ag
72.8% 84.0% 82.2% 87.5%
81.4% Ounces Produced Gold
23,205 31,239 27,885 33,702
29,896 Silver (000's)
1,278 1,893 1,544 2,066 2,013 Ounces
Sold Gold
27,394 23,667 29,830 31,207 30,888 Silver (000's)
1,405 1,534 1,572 2,092 2,031 Average realized price per
gold ounce
$1,154 $1,148 $1,082 $1,162 $1,168 Average
realized price per silver ounce
$15.39 $14.57 $14.75 $16.49
$16.73
- First quarter gold and silver
production decreased 26% and 32%, respectively, to 23,205 and 1.3
million ounces compared to the prior quarter. Year-over-year, gold
and silver production decreased 22% and 37%, respectively
- Lower production during the quarter was
primarily driven by temporarily lower grades and recoveries due to
mine sequencing
- Underground development at the La
Nación deposit, located between the Independencia and Guadalupe
underground mines, remains on-schedule. Production is expected to
commence in the second half of 2019, adding approximately 400 tons
per day of additional mill feed
- Installation of the new thickener at a
cost of approximately $4.5 million remains on budget and on
schedule for completion during the third quarter, with foundation
work near completion at the end of the first quarter. The project
is expected to increase gold and silver recovery rates by
approximately 2% and have an estimated one-year payback
- Approximately 32% of gold sales in the
first quarter, or 8,803 ounces, were sold under Palmarejo's gold
stream agreement at a price of $800 per ounce. Full-year gold sales
under the stream agreement are expected to remain at similar
levels
- Full-year 2019 production guidance
remains unchanged at 95,000 - 105,000 ounces of gold and 6.5 - 7.2
million ounces of silver
Rochester, Nevada
1Q
2019 4Q 2018 3Q 2018 2Q
2018 1Q 2018 Tons placed
2,667,559
3,674,566 4,061,082 4,083,028 4,351,131 Average silver grade (oz/t)
0.46 0.46 0.52 0.53 0.54 Average gold grade (oz/t)
0.003 0.004 0.004 0.004 0.003 Ounces Produced Silver (000's)
960 1,466 1,290 1,125 1,157 Gold
8,256 15,926 14,702
12,273 11,487 Ounces Sold Silver (000's)
1,000 1,391 1,248
1,097 1,119 Gold
8,511 15,339 14,257 12,030 11,163 Average
realized price per silver ounce
$15.31 $14.53 $14.70 $16.47
$16.66 Average realized price per gold ounce
$1,299 $1,234
$1,204 $1,297 $1,331
- Silver and gold production during the
first quarter decreased 35% and 48%, respectively, to 1.0 million
and 8,256 ounces compared to the prior quarter. Year-over-year,
silver and gold production decreased 17% and 28%, respectively
- Lower production was driven by reduced
ore placement rates due to adverse weather conditions (snowfall) in
western Nevada. This had a comparatively larger impact on gold
production as silver production was partially offset by higher
residual leach pad performance
- Commissioning of the initial HPGR unit
remains on budget and on schedule. Crushing rates and silver
recoveries are anticipated to increase beginning mid-year with full
ramp-up expected during the third quarter. To date, foundation work
has been completed and the two main crushing units have been set in
place, with steel erection continuing and electrical tie-in work
currently underway
- The Company is maintaining full-year
2019 production guidance of 4.2 - 5.0 million ounces of silver and
40,000 - 50,000 ounces of gold; installation of the initial HPGR
unit and a new secondary crusher is expected to result in higher
production during the second half of the year compared to the first
half
Kensington, Alaska
1Q
2019 4Q 2018 3Q 2018 2Q
2018 1Q 2018 Tons milled
164,332 166,310
167,964 168,751 158,706 Average gold grade (oz/t)
0.20 0.23
0.17 0.16 0.17 Average recovery rate
90.2% 93.0% 91.8% 92.6%
94.0% Gold ounces produced
29,973 35,335 26,809 25,570
26,064 Gold ounces sold
31,335 33,202 25,648 28,165 27,763
Average realized price per gold ounce
$1,290 $1,246 $1,161
$1,269 $1,307
- Commercial production at Jualin was
declared on December 1, 2018. The figures shown in the table above
include pre-commercial production
- First quarter gold production of 29,973
ounces represented a 15% decrease quarter-over-quarter and a 15%
increase compared to the same period the prior year. During the
quarter, mining activities at Jualin shifted focus from ore
development to full production, allowing for longhole stope
production at Jualin in future quarters
- Ore from Jualin accounted for
approximately 10% of Kensington’s production during the quarter.
This contribution is expected to increase in the remaining quarters
of 2019
- Full-year 2019 production guidance is
unchanged at 117,000 - 130,000 ounces of gold
Wharf, South Dakota
1Q
2019 4Q 2018 3Q 2018 2Q
2018 1Q 2018 Tons placed
1,090,510
1,644,168 1,127,391 1,075,820 1,076,395 Average gold grade (oz/t)
0.020 0.020 0.023 0.023 0.022 Ounces produced Gold
16,902 16,960 19,437 22,507 17,936 Silver (000's)
13
13 13 13 12 Ounces sold Gold
18,086 15,306 19,874 23,053
17,339 Silver (000's)
14 11 12 14 11 Average realized price
per gold ounce
$1,317 $1,247 $1,198 $1,285 $1,341
- Gold production remained relatively
flat quarter-over-quarter at 16,902 ounces in the first quarter and
decreased 6% year-over-year
- Production levels reflected the impact
of lower grade tons placed in the prior quarter. Production was
above target and is expected to increase throughout the remainder
of the year
- The Company is maintaining full-year
2019 production guidance of 82,000 - 87,000 ounces of gold
Silvertip, British Columbia
1Q
2019 4Q 2018 3Q 2018 2Q
2018 1Q 2018 Tons milled
62,051 38,802
28,080 14,450 4,795 Average silver grade (oz/t)
5.50 6.06
7.29 14.15 10.05 Average zinc grade (%)
5.9% 5.8% 8.0% 8.2%
6.6% Average lead grade (%)
3.7% 3.9% 4.6% 8.1% 7.3% Average
recovery rate – Ag
69.9% 60.5% 47.0% 42.3% 30.9% Average
recovery rate – Zn
50.5% 69.1% 49.1% 57.9% 18.7% Average
recovery rate – Pb
66.8% 54.7% 44.4% 40.5% 21.1% Produced
Silver (000's ounces)
239
142 96 87 15 Zinc (000's lbs)
3,719 3,083 2,207 1,372 119
Lead (000's lbs)
3,077 1,658 1,159 949 147 Sold Silver
(000's ounces)
215 127 131 10 — Zinc (000's lbs)
4,723 2,552 1,772 469 — Lead (000's lbs)
2,748 1,444
1,645 — — Average realized price per silver ounce, gross
$14.98 $15.54 $14.62 $16.31 — Treatment and refining charges
per silver ounce
$1.24 $1.38 $3.34
$3.30 Average realized price per silver ounce, net
$13.74 $14.16 $11.28 $13.01 — Average realized price per
zinc pound, gross
$1.50 $1.07 $1.20 $1.35 — Treatment and
refining charges per zinc pound
$0.31 $0.24
$0.27 $0.27 Average realized price per zinc
pound, net
$1.19 $0.83 $0.93 $1.08 — Average realized price
per lead pound, gross
$0.92 $0.87 $0.97 $— — Treatment and
refining charges per lead pound
$0.06 $0.07
$0.07 $— Average realized price per lead
pound, net
$0.86 $0.80 $0.90 $— —
- Silvertip achieved commercial
production on September 1, 2018. The figures shown in the above
table include pre-commercial production
- First quarter silver, zinc and lead
production increased 68%, 21% and 86%, respectively, to 0.2 million
ounces of silver, 3.7 million pounds of zinc and 3.1 million pounds
of lead compared to the prior quarter
- Higher production was driven by higher
tons milled, which increased 60% quarter-over-quarter. The mill
exceeded 1,100 tonnes per day ("tpd") (1,000 metric tons per day
(“mtpd”)) intermittently in March and averaged approximately 843
tpd (765 mtpd), excluding two days of scheduled maintenance
- Average head grades, recovery rates and
concentrate grades are expected to continue trending higher as mill
availability improves and newly-mined higher grade material is
processed
- The permit amendment application to
operate at a year-round mining and milling rate of 1,100 tpd (1,000
mtpd) is expected to be received late in the current quarter
- The new 220-person camp facility was
opened to employees at the beginning of March 2019
- Full-year 2019 production guidance is
unchanged at 1.5 - 2.5 million ounces of silver, 25 - 40 million
pounds of zinc and 20 - 35 million pounds of lead
2019 Production Guidance
Coeur's 2019 production guidance remains unchanged from its
original guidance published on February 20, 2019.
Gold Silver Zinc
Lead (oz) (K oz)
(K lbs) (K lbs) Palmarejo 95,000 -
105,000 6,500 - 7,200 — —
Rochester 40,000 - 50,000 4,200 -
5,000 — —
Kensington 117,000 - 130,000 — — —
Wharf
82,000 - 87,000 — — —
Silvertip — 1,500 -
2,500 25,000 - 40,000 20,000 - 35,000
Total
334,000 - 372,000 12,200 - 14,700 25,000 -
40,000 20,000 - 35,000
Financial Results and Conference Call
Coeur will report its first quarter financial results on May 1,
2019 after the New York Stock Exchange closes for trading. There
will be a conference call on May 2, 2019 at 11:00 a.m. Eastern
Time.
Dial-In Numbers: (855) 560-2581 (U.S.) (855) 669-9657
(Canada) (412) 542-4166 (International) Conference ID: Coeur Mining
Hosting the call will be Mitchell J. Krebs, President and Chief
Executive Officer of Coeur, who will be joined by Thomas S. Whelan,
Senior Vice President and Chief Financial Officer, Terry F. D.
Smith, Senior Vice President of Operations, Hans J. Rasmussen,
Senior Vice President of Exploration, and other members of
management. A replay of the call will be available through May 16,
2019.
Replay numbers: (877) 344-7529 (U.S.) (855) 669-9658
(Canada) (412) 317-0088 (International) Conference ID: 101 29 527
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing
precious metals producer with five wholly-owned operations: the
Palmarejo gold-silver complex in Mexico, the Rochester silver-gold
mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold
mine in South Dakota, and the Silvertip silver-zinc-lead mine in
British Columbia. In addition, the Company has interests in several
precious metals exploration projects throughout North America.
Cautionary Statement
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding anticipated production, results,
recoveries, mining rates, throughput, development efforts,
operations at Palmarejo, Rochester, Kensington, Wharf and Silvertip
and timing of obtaining permit amendment approval for Silvertip.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause Coeur's actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others, the risks and hazards inherent in the mining business
(including risks inherent in developing large-scale mining
projects, environmental hazards, industrial accidents, weather or
geologically related conditions), changes in the market prices of
gold, silver, zinc, and lead and a sustained lower price
environment, the uncertainties inherent in Coeur's production,
exploratory and developmental activities, including risks relating
to permitting and regulatory delays, ground conditions, grade
variability, any future labor disputes or work stoppages, the
uncertainties inherent in the estimation of mineral reserves,
changes that could result from Coeur's future acquisition of new
mining properties or businesses, the loss or insolvency of any
third-party smelter or refiner with whom Coeur does business, the
effects of environmental and other governmental regulations, the
risks inherent in the ownership or operation of or investment in
mining properties or businesses in foreign countries, Coeur's
ability to raise additional financing necessary to conduct its
business, make payments or refinance its debt, as well as other
uncertainties and risk factors set out in filings made from time to
time with the United States Securities and Exchange Commission, and
the Canadian securities regulators, including, without limitation,
Coeur's most recent reports on Form 10-K and Form 10-Q. Actual
results, developments and timetables could vary significantly from
the estimates presented. Readers are cautioned not to put undue
reliance on forward-looking statements. Coeur disclaims any intent
or obligation to update publicly such forward-looking statements,
whether as a result of new information, future events or otherwise.
Additionally, Coeur undertakes no obligation to comment on
analyses, expectations or statements made by third parties in
respect of Coeur, its financial or operating results or its
securities.
Christopher Pascoe, Coeur's Director, Technical Services and a
qualified person under Canadian National Instrument 43-101,
approved the scientific and technical information concerning
Coeur's mineral projects in this news release. For a description of
the key assumptions, parameters and methods used to estimate
mineral reserves and resources, as well as data verification
procedures and a general discussion of the extent to which the
estimates may be affected by any known environmental, permitting,
legal, title, taxation, socio-political, marketing or other
relevant factors, Canadian investors should refer to the Technical
Reports for each of Coeur's properties as filed on SEDAR at
sedar.com.
Average Spot Prices
1Q 2019 4Q 2018
3Q 2018 2Q 2018 1Q 2018 Average
Silver Spot Price Per Ounce $ 15.57 $ 14.54 $ 15.02 $ 16.53 $ 16.77
Average Gold Spot Price Per Ounce $ 1,304 $ 1,226 $ 1,213 $ 1,306 $
1,329 Average Zinc Spot Price Per Pound $ 1.23 $ 1.19 $ 1.15 $ 1.41
$ 1.55 Average Lead Spot Price Per Pound $ 0.92 $ 0.89 $
0.95 $ 1.08 $ 1.14
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version on businesswire.com: https://www.businesswire.com/news/home/20190411005816/en/
For Additional InformationCoeur Mining, Inc.104 S.
Michigan Avenue, Suite 900Chicago, IL 60603Attention: Paul
DePartout, Director, Investor RelationsPhone: (312)
489-5800www.coeur.com
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